2023-05-01 08:01:13 ET
Deutsche Bank ( NYSE: DB ) is beefing up its investment bank advisory team in anticipation of a M&A rebound and to capitalize on market dislocation after European rival Credit Suisse ( CS ) collapsed.
The German lender has added 26 managing directors in the past two months, with several hailing from CS, and plans to hire more, Fabrizio Campelli, head of DB's investment bank, told the Financial Times in an interview.
The new hires are in addition to Deutsche Bank's ( DB ) acquisition of Numis , a U.K. stock broker, for £410M that was announced on Friday. That deal will add 344 trading, research and capital markets staff to its London corporate finance unit.
The hiring spree comes soon after Deutsche Bank ( DB ) announced a new round of job cuts in back-office operations, amounting to about 800 positions, or 5% of its non-client-facing workforce, as it seeks to accelerate efficiency improvements.
Campelli said the Numis acquisition doesn't contradict DB's overall strategy to focus its investment banking operations as the deal is complementary to its corporate banking and wealth management operations. "This is not us going back into equities," he said , adding that the deal won't result in a material increase in resources to the division.
"We are at a multiyear cyclical deal-flow low point right now, and with the market poised to rebound in '24, '25, and '26, this has created a great opportunity for us to invest in and attract talent," said Mark Fedorcik, co-head of investment banking at DB.
DB shares edged down 0.2% in Monday premarket trading in the U.S.
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Deutsche Bank adds to investment banking team ahead of deal-making rebound - report